AZ-104 Manage Azure Identities and Governance Practice Question
A platform team must enforce two governance rules across every current and future subscription under a management group: resources must include an Environment tag, and only East US or West US may be used for deployment. They want one compliance view for both rules and a way to correct missing tags on existing resources where supported. What should they assign?
⚠ Common exam trap
A common mix-up: candidates confuse assigning individual policies per subscription (Option A) with using an initiative at the management group scope, missing the requirement for a single compliance view and automatic future subscription coverage.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Assign an initiative at the management group scope that contains the tag and allowed-location policies, then remediate the tag policy.
An initiative (policy set) at the management group scope enforces both the required tag and allowed-location rules across all current and future subscriptions in a single compliance view. The tag policy can be remediated using a remediation task with a managed identity to automatically add missing tags on existing resources where supported (e.g., via modify effect). This approach centralizes governance without manual per-subscription assignment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Assign two separate policies manually to each subscription and skip remediation.
Why it's wrong here
Assigning two separate policies manually to each subscription sacrifices centralized governance and creates inconsistent configuration as the subscription portfolio grows. If a new subscription is added later, an administrator must remember to repeat the assignment, potentially leaving that subscription completely ungoverned. Skipping remediation also leaves pre-existing resources that already lack the required tag unflagged and noncompliant, so the policy only restricts future deployments while doing nothing to correct current drift.
When this WOULD be correct
This option would be correct if the question required applying two unrelated policies to individual subscriptions without needing a unified compliance view or automatic remediation, and manual per-subscription assignment was acceptable.
- ✓
Assign an initiative at the management group scope that contains the tag and allowed-location policies, then remediate the tag policy.
Why this is correct
An initiative groups multiple policies into one assignment, which gives the team a single compliance view and consistent enforcement across all current and future subscriptions under the management group. The tag policy can then be remediated for existing resources where the effect supports it, while the location rule blocks future noncompliant deployments.
- ✗
Assign Contributor to the management group so administrators can fix any noncompliant resource manually.
Why it's wrong here
Granting Contributor at the management group scope grants broad write and delete permissions across every subscription, yet it imposes no logic that forces resource locations or tag values. The role only lets a human fix noncompliant resources after deployment, so enforcement is inconsistent, manual, and prone to error. This approach also unnecessarily expands the access surface for all assigned users, violating least privilege and creating a governance risk rather than solving the policy need.
When this WOULD be correct
This option would be correct if the question asked for a way to allow administrators to manually fix noncompliant resources without automated enforcement, such as in a scenario where governance is advisory and requires human intervention.
- ✗
Apply a CanNotDelete lock at the management group scope to prevent drift.
Why it's wrong here
CanNotDelete is an Azure Resource Manager lock that only prevents deletion of a resource; it does not block creation in disallowed regions, and it cannot add a missing tag, so it fails to enforce either governance rule. Resource locks are scoped to subscriptions, resource groups, or individual resources—not management groups—so this action would not even apply at the requested level. A lock also blocks legitimate delete operations long after the compliance issue was missed, creating an operational burden without adding any actual compliance enforcement.
When this WOULD be correct
A question asks for a method to prevent accidental deletion of critical resources across a management group, with no requirement for governance rules or compliance monitoring.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓Assign an initiative at the management group scope that contains the tag and allowed-location policies, then remediate the tag policy.Correct answer▾
Why this is correct
An initiative groups multiple policies into one assignment, which gives the team a single compliance view and consistent enforcement across all current and future subscriptions under the management group. The tag policy can then be remediated for existing resources where the effect supports it, while the location rule blocks future noncompliant deployments.
✗Assign two separate policies manually to each subscription and skip remediation.Wrong answer — click to see why▾
Why this is wrong here
Assigning two separate policies manually to each subscription is inefficient and does not provide a single compliance view for both rules. It also skips remediation, so missing tags on existing resources would not be corrected.
★ When this WOULD be the correct answer
This option would be correct if the question required applying two unrelated policies to individual subscriptions without needing a unified compliance view or automatic remediation, and manual per-subscription assignment was acceptable.
Why candidates choose this
Candidates may think that assigning policies individually is simpler or more straightforward, not realizing that an initiative at the management group scope provides centralized management and a single compliance dashboard.
✗Assign Contributor to the management group so administrators can fix any noncompliant resource manually.Wrong answer — click to see why▾
Why this is wrong here
Assigning Contributor at the management group scope grants broad permissions to modify resources but does not enforce governance rules or provide a compliance view; it relies on manual fixes and does not automate compliance or remediation.
★ When this WOULD be the correct answer
This option would be correct if the question asked for a way to allow administrators to manually fix noncompliant resources without automated enforcement, such as in a scenario where governance is advisory and requires human intervention.
Why candidates choose this
Candidates may think Contributor role is sufficient to enforce rules because it allows manual correction, overlooking the need for automated enforcement and compliance reporting.
✗Apply a CanNotDelete lock at the management group scope to prevent drift.Wrong answer — click to see why▾
Why this is wrong here
A CanNotDelete lock prevents resource deletion but does not enforce tagging or allowed locations, and it cannot provide a compliance view or remediate missing tags.
★ When this WOULD be the correct answer
A question asks for a method to prevent accidental deletion of critical resources across a management group, with no requirement for governance rules or compliance monitoring.
Why candidates choose this
Candidates may confuse locks with governance enforcement, thinking that preventing deletion also ensures compliance, or they may overestimate the scope of locks.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
Go deeper
Related to this question
Learn chapter
Privileged Identity Management (PIM)
Key term
Scope
In IT, scope defines the boundaries, goals, and deliverables of a project, assessment, or engagement, specifying what is included and what is excluded.
Key term
Subscription
A subscription is a payment model where you pay a recurring fee to access a product or service instead of buying it once and owning it forever.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.